AN ACT TO MAKE TECHNICAL, CLARIFYING, AND OTHER AMENDMENTS TO PROVISIONS APPLICABLE TO COMMERCIAL BANKS, PROVISIONS APPLICABLE TO BANK HOLDING COMPANIES, AND PROVISIONS RELATING TO MORTGAGE NOTICE REQUIREMENTS.
Identical to H 462 filed on 3/23/17.
Part I. Commercial Banks
Makes technical changes to the statutory references in GS 53C-1-4(25), defining deposit. Makes organizational and clarifying changes to GS 53C-1-4-(46), defining non-branch bank business office.
Amends subsection (b) of GS 53C-2-7, listing the records in the custody of the Office of the Commissioner of Banks (OCOB) that are confidential and cannot be disclosed. Allows the OCOB to treat any response to an application for licensure as confidential. Makes confidential records containing information that was privileged prior to being obtained by the Commissioner of Banks (Commissioner) in preparation for or anticipation of or in the course of litigation, examination, audit, or investigation. Makes confidential records containing personal information about a person (currently, records containing nonpublic personal information about a customer) maintained by or on behalf of the financial institution, whether in paper, electronic, or other form. Expands the provision making confidential records containing information furnished in connection with an application bearing on the character, competency, or experience, or other information about the personal finances of an existing or proposed organizer, officer, or director of a depository institution, federally chartered institution, holding company, or any other person subject to the Commissioner's jurisdiction, to also make confidential the same records of an existing or proposed employee. Expands the provision making confidential the records of NC financial institutions in dissolution that have liquidated, are under the Commissioner's supervisory control, or are in receivership, and that contain names or other personal information of any person (currently, of any customer of the institutions). Replaces the existing language of subdivision (8) and replaces it with a provision making confidential the minutes or other records that have been obtained by the Commissioner and that are related to the meetings of, or have been prepared by, the board of directors, a compliance review committee of the board of directors, any other committee of the board of directors, a committee established at the direction of the board of directors, and a committee established at the direction of a committee of the board of directors (all bodies of an NC financial institution). Adds new provision making confidential records that are confidential under GS Chapter 132 (Public Records) or protected from disclosure under other applicable law. Makes other clarifying and technical changes.
Amends GS 53C-4-12(a)(1) to make technical and clarifying changes to the definition of a compliance review committee. Further, adds compliance with federal or State regulatory requirements and cybersecurity requirements to the list of standards or requirements a board, committee, or person can be responsible for evaluating compliance with in order to constitute a compliance review committee under the statute. Expands the notwithstanding clause of GS 53C-4-12(b) to add that compliance review documents are confidential, not available for public inspection, and are not discoverable or admissable in evidence in a civil action as specified, regardless of any other provisions of the General Statutes in addition to GS Chapter 132.
Makes clarifying change to GS 53C-5-1(b) concerning the powers of banks. Authorizes a bank to engage in any activity other than as principal (currently, other than as principal permitted under the Federal Deposit Insurance Act, 12 USC 1831a).
Amends GS 53C-6-7, concerning payable on death accounts, to replace the language "natural person" with "individual." Establishes that payment by the bank to, on the order of, or at the direction of any owner is a total discharge of the bank's obligation as to the paid amount unless the individual establishing the Payable on Death account has agreed with the bank that a withdrawal requires more than one signature (currently, any owner can withdraw funds by writing a check or otherwise as set forth in the account contract, and receive payment in cash or check payable to the owner's personal order, with no provision allowing for the requirement of more than one signature). Adds a provision providing that that a pledge of a Payable on Death account by an owner, unless otherwise specifically agreed between the bank and all owners in writing, (1) is a valid pledge and transfer of the account or of the pledged amount, (2) is binding upon all owners and beneficiaries, (3) does not operate to sever or terminate the joint ownership of all or any part of the account, and (4) survives the death of any owner or any beneficiary. Makes other conforming and technical changes.
Amends GS 53C-6-8, concerning personal agency accounts, to similarly replace the language of a natural person with an individual. Makes technical changes.
Amends GS 53C-6-18 to clarify that the statute authorizes a bank to establish one or more non-branch bank business offices in this State or another state as defined in GS 53C-1-4(46) as amended by this act, subject to the specified requirements. Amends the specified requirements to require: (1) where a proposed non-branch bank office will be used in connection with a new activity for which an application is required under GS 53-5-1(d) or an investment for which a notice is required under GS 53C-5-2(e), the bank's application or notice to include written notification (as specified in existing language) of the intent to open the office and (2) where written notification is not required by the above provision (GS 53C-6-18(a)(1)), the bank to provide the Commissioner with a written notification of the location of the office and a description of the business to be conducted at the office.
Amends GS 53C-7-207 to rename the statute as Combination with a nonbank subsidiary (currently, Combination with a subsidiary). Makes conforming changes to refer to a nonbank subsidiary throughout the statute. Makes clarifying change, requiring a bank proposing to combine a nonbank subsidiary with another company that is not a depository institution (currently does not clarify the other company not being a depository institution), if the nonbank subsidiary is the resulting entity, to give prior written notice to the Commissioner that details the proposed combination. Further clarifies that this prior written notice requirement is not required for a combination of a nonbank subsidiary and another company that is not a depository institution so long as the nonbank subsidiary is not the resulting entity. Makes technical changes.
Repeals GS 53C-9-405 (Appointment of substitute trustee where no objection made) and GS 53C-9-406 (Hearing where objection made; appeal from order).
Part II. Bank Holding Companies
Amends GS 53C-10-101, requiring every holding company that directly or indirectly controls a bank or nonbank subsidiary that has an office located in this State to register with the Commissioner and maintain that registration on an annual basis in the form prescribed by the Commissioner. Makes technical change to the statute's title.
Recodifies GS 53-232 as GS 53C-10-303, and makes technical and clarifying changes.
Repeals Article 18 of GS Chapter 53 (Bank Holding Company Act of 1984).
Part III. Mortgage Notice Requirements
Current law, GS 45-91, details five requirements a servicer to every home loan must comply with, regardless of whether the loan is in default or the borrower is or has been in bankruptcy.
Amends the requirements that must be satisfied for any fee incurred by a servicer under GS 45-91(1)b. Establishes that a servicer is not required to send the required statement for a fee if: (1) the fee is included in a periodic statement sent to the borrower that meets the requirements of 12 CFR 1026.41 (federal requirements for periodic statements of mortgage loans; this is an added requirement) and (2) the fee results from a service that is affirmatively requested by the borrower, the fee is paid for by the borrower at the time the service is provided, and the fee is not charged to the borrower's loan account (these are existing requirements). Makes technical changes.